It is expected that home prices will rise over 13% in 2021, building on the already unexpectedly strong growth this year that’s been driven by a shortage of listings and record low interest rates. According to the research which analyzes 64 of the nation’s largest real estate markets — revealing that the aggregate price of a home in Canada is set to rise 13.5% year-over-year to $805,000 in the fourth quarter of 2021. It is said that the home price growth will be driven by the return to pre-pandemic levels of immigration, the continued vaccine rollout, and low-interest rates. This comes as the aggregate price — calculated using a weighted average of the median values of all housing types collected — of a home in Canada increased 14.1% year-over-year to $749,165 in the first quarter of 2021, as strong demand continues to outpace supply in virtually every market across the country. More than two-thirds of the regions surveyed (67%) saw year-over-year double-digit aggregate price gains, driven largely by the single-family property segment, while 77% of regions surveyed reported median price appreciation of standard two-storey homes of 10% or more. On a local level, the aggregate price of a home in the Greater Toronto Area (GTA) increased 13.1% year-over-year to $989,961 in the first quarter of 2021. Broken out by housing type, the median price of a two-storey home increased 13.6% to $1,164,894, while the median price of a bungalow increased 15.3% to $982,120, and the median price of a condominium increased 1.2% to $598,819 during the same period. While prices in Toronto are poised to get undoubtedly more expensive this year, it’s not quite as bad as in Vancouver, where the aggregate price of a home is forecast to increase 13% to $1,276,000 in the fourth quarter of 2021, to become the most expensive city to buy a home in the country. Reference: https://cutt.ly/zvtusID
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